When is the UK services PMI and how could it affect GBPUSD? This 3 August GBPUSD Impact Analysis will reveal.
3 August, GKFX – The UK economy will release its July services PMI later in the European session at 08:30 GMT, which is expected to come in at 54.7 versus 55.1 booked in June.
Deviation impact on GBPUSD
Readers can find FX Street’s proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 10 and 50 pips in deviations up to 2.5 to -2, although in some cases, if notable enough, a deviation can fuel movements of up to 70 pips.
UK Services PMI: 3 August GBPUSD Impact Analysis
Haresh Menghani, Analyst at FXStreet explains:
“The (recent) bearish momentum might now drag the pair even below YTD lows, around the 1.2960-55 region, towards testing a short-term descending trend-channel support, currently near the 1.2900-1.2890 region.
Alternatively, a move back above 1.3035 level is likely to assist the pair to recover further towards 1.3065-70 resistance. However, any subsequent up-move now seems more likely to remain capped at the neckline support break-point, now turned resistance, near the 1.3095-1.3100 region.”
About the UK services PMI
The PMI service released by both the Chartered Institute of Purchasing & Supply and the Markit Economics is an indicator of the economic situation in the UK services sector. It captures an overview of the condition of sales and employment.
It is worth noting that the UK service sector does not influence, either positively or negatively, the GDP as much as the Manufacturing PMI does. Traders want the highest possible reading as that will be taken as positive for the GBP. Any reading above 50 signals expansion, while a reading under 50 shows contraction.
This article UK Services PMI: 3 August GBPUSD Impact Analysis was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.